Sunday, January 17, 2016

Ramanan — National Accounting As Atheism

On his blog, Sample Of One, Eric Lonergan has a post tiled Accounting as religion: Buffett, Derrida, and MMT. The post ends with the following line:
"… but money is not a liability of the state."
Eric’s post is arguing with the Neochartalists but my post here has nothing to do with Neochartalism. I always find it amusing when people go “money is not the liability of the state, even though it’s technically a liability” and so on. I am going to take a different track here and make an argument like James Tobin’s brilliant 1963 paper Commercial Banks As Creators Of “Money” .… 
The Case For Concerted Action
National Accounting As Atheism
V. Ramanan

2 comments:

Matt Franko said...

"money is not a liability of the state"

"money" is a metonym so it can be many things... and morons can argue about what it is or isnt....

JKH said...

quite right Matt

And I became one of them today

:)